Japan

Japanese refiner Cosmo Oil is considering switching payment for its term
purchases of Iranian crude away from the US dollar as early as April, when it finalizes contract terms for the next fiscal year, a senior company source said Tuesday.

The source said Cosmo had been contacted by Tehran some six months ago about paying in alternative currencies such as the yen or euro. Other Japanese refiners have talked about the possibility of using other currencies to pay for Iranian crude, which would still be officially priced in dollars.

“We may consider and agree on the change of the currency used for our
term contract with Iran from April, when our new contract starts, if Tehran requests the change next month,” the Cosmo source said.
“We have told them in the past that we prefer the yen to the euro for our
convenience,” the source added.

The source said Cosmo was told by its bank in January that it preferred
not to accept dollar-based transactions related to Iranian crude purchases.
The bank did not give any explanation, the source said. Officials from the bank were not available for comment.

Iran Oil and Gas Network